- PBF Logistics reduced their distributions by 42% earlier in 2020, and during their recent conference call, management spoke of deleveraging.
- This appears to be their focus for the time, but it should not last too long since their leverage is only moderate.
- They should produce ample free cash flow after distribution payments, meaning that they can deleverage even further in the coming years if desired.
- This means their ability to grow and possibly even reinstate their previous distributions is very solid and could occur within one to three years.
- Given this situation, I believe that maintaining my bullish rating is appropriate.
For further details see:
PBF Logistics: Deleveraging Might Be The Plan, But It Should Be Over Soon